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Vehicle Telematics Market Size and Forecast, by Service Type (Information & Navigation, Safety & Security, Insurance Telematics, Infotainment System); Vehicle Type (Passenger Cars, Commercial Vehicles); Technology (Embedded, Tethered, Integrated); Sales Channel (OEM, Aftermarket) - Growth Trends, Key Players, Regional Analysis 2026-2035

  • Report ID: 4462
  • Published Date: Sep 09, 2025
  • Report Format: PDF, PPT

Vehicle Telematics Market Outlook:

Vehicle Telematics Market size was over USD 83.99 billion in 2025 and is poised to exceed USD 210.06 billion by 2035, witnessing over 9.6% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of vehicle telematics is estimated at USD 91.25 billion.

Vehicle Telematics Market Size
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The market is primarily driven by higher count of connected cars along with expansion of automotive sector and high demand of vehicles by the population.  In 2021, there were nearly 237 million connected cars worldwide, and the count is expected to reach approximately 400 million by 2025.

The increasing requirement of semiconductor chips owing to its prolonged shortage due to lockdown imposed by pandemic, it is to accelerate its growth of semiconductor companies. In 2021, more than 1 trillion semiconductors were sold in 2021. In addition, telematics helps drivers to reduce consumption of fuel by tracking their unused time and increasing their efficiency. Alarming need to reduce fuel usage and rising requirement for safety assistance in the automobile is to boost the growth of vehicle telematics market.

Key Vehicle Telematics Market Insights Summary:

  • Regional Highlights:

    • The North America vehicle telematics market commands the largest share by 2035, driven by rising vehicle fatalities, traffic congestion, and increasing demand for telematics and semiconductor production.

  • Segment Insights:

    • The passenger cars segment in the vehicle telematics market is anticipated to achieve the largest share by 2035, attributed to rising demand and sales of both conventional and electric passenger cars.

  • Key Growth Trends:

    • Need to Minimize the Fuel Consumption
    • Rising Popularity of Movement and Location Tracking Feature

  • Major Challenges:

    • Need to Minimize the Fuel Consumption
    • Rising Popularity of Movement and Location Tracking Feature

  • Key Players: Bosch Global Software Technologies, Bridgestone Mobility Solutions B.V., Trimble, Octo Group S.p.A., Verizon, MiX Telematics, Zonar Systems, Harman International, Microlise Limited, On Star Corporation, Qualcomm Technologies, Inc,.

Global Vehicle Telematics Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 83.99 billion
    • 2026 Market Size: USD 91.25 billion
    • Projected Market Size: USD 210.06 billion by 2035
    • Growth Forecasts: 9.6% CAGR (2026-2035)

  • Key Regional Dynamics:

    • Largest Region: North America
    • Fastest Growing Region: Asia Pacific
    • Dominating Countries: United States, China, Germany, Japan, United Kingdom
    • Emerging Countries: China, India, Japan, South Korea, Singapore

    • Last updated on : 9 September, 2025

Growth Drivers

  • Need to Minimize the Fuel Consumption - With the rising prices and shortage of fuel, the government is focusing on minimize its usage. Also, the high production of vehicles is expected to increase the demand of fuel which is generating an insufficiency for everyone, which in turn, is expected to bring lucrative growth opportunities. In 2020, the demand of fuel from transportation sector of both OECD and non-OECD regions was equal. Moreover, by 2040, the fuel demand in non-OECD region is likely to increase twice, from about 47 quadrillion btu (British thermal units) in 2012 to 94 quadrillion btu.
  • Rising Popularity of Movement and Location Tracking Feature - Location tracking is useful to protect the vehicle from dangers and facilitates to contact for assistance in emergency circumstances. Currently, nearly 98% of cars is likely to have location tracking technology in next few years and there are around 78 million cars on road, embedded with tracking technology.
  • Increase in Demand for Semiconductor Chips and its Production - There had been the shortage of semiconductor chips in past few years, which has increased its demand across the market. The global sale of semiconductor reached almost half a trillion dollars in 2021.
  • Soaring Need for Automobiles with Advanced Safety Features - Owing to rising cases of accidents, the need of advanced safety feature is growing and turned out to be of significant importance. In the United States, around 45% wish to have blind spot warning system and about 51% expect to have backup warning from the vehicle.
  • Increasing Number of Automobiles with Connectivity Solution - Nowadays, with the rising prevalence in IoT and 5g adoption, people expect their car to perform all the functions similar to their computers and mobile phone which is making connectivity solution the need of an hour. By 2030, more than 2 billion connected cars are expected to exist worldwide.

 Challenges

  • Risk of Data Theft Associated with Telematics’ Data - The telematics system contains huge volume of sensitive data which is vulnerable to risk. The complexity of the telematics system leaves a space for an error in cybersecurity. The breach of network might happen during the transfer between the telematics sensors. Thus, security concerns involved in vehicle telematics system is expected to hinder the market growth.
  • Exorbitant Cost of Installation for Getting Connectivity Feature
  • Difficult in Interoperability in Devices Produced by Different Manufacturers

Vehicle Telematics Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Period

2026-2035

CAGR

9.6%

Base Year Market Size (2025)

USD 83.99 billion

Forecast Year Market Size (2035)

USD 210.06 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)
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Vehicle Telematics Market Segmentation:

Vehicle Type Segment Analysis

The passenger car segment is expected to hold the largest market size by the end of 2035. The growth is expected on the account of rising need of passenger car which is prompting the sales of passenger cars. The burgeoning population is demanding passenger cars for fulfilling their needs which is projected in increase the production rate of passenger cars. In 2020, globally, around 65 million passenger cars were sold. Furthermore, boosted sales of electric passenger car is to propel the growth of the segment. Globally, there were around 16 million electric cars on road in 2021. In the first quarter of 2022, nearly 2 million electric passenger cars were sold.

Our in-depth analysis of the global vehicle telematics market includes the following segments:

      By Service Type
  • Information & Navigation
  • Safety & Security
  • Insurance Telematics
  • Infotainment System

      By Vehicle Type
  • Passenger Cars
  • Commercial Vehicles

      By Technology
  • Embedded
  • Tethered
  • Integrated

      By Sales Channel
  • OEM
  • Aftermarket
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Vehicle Telematics Market Regional Analysis:

North American Market Insights

The North America vehicle telematics market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. Rising instances of fatalities caused by vehicle accident and high rate of frequent traffic congestion is expected to prompt the demand of safety feature in the automobiles. In 2021, nearly 43,000 people died in vehicle traffic crashes. Furthermore, the increased production of semiconductor in North America owing to its higher demand along with the expansion of automotive sector and presence of key players is projected to boost the market growth in the region. Average demand for semiconductor chips rose by nearly 17% in 2021 than 2019 and semiconductor production was increased by approximately 90% in 2021. Further, the higher usage of fuel by vehicles in United States is focusing to increase the need to reduce fuel consumption which in turn is expected to fuel the growth of vehicle telematics market.  In 2020, nearly 40% of U.S. oil was consumed by light –duty vehicles.

Vehicle Telematics Market Share
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Vehicle Telematics Market Players:

    • Bosch Global Software Technologies
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Bridgestone Mobility Solutions B.V.
    • Trimble
    • Octo Group S.p.A.
    • Verizon
    • MiX Telematics
    • Zonar Systems
    • Harman International
    • Microlise Limited
    • On Star Corporation
    • Qualcomm Technologies, Inc.

Recent Developments

  • Trimble acquired AgileAssets,  an asset management provider to private and government organizations including road authorities and state level transportation agencies.

  • Bosch Global Software Technologies came in a 5-year partnership with Astrata for advancing fleet management system. The partnership aims to reduce the shortages and enables Astrata to broaden its supply chain all over the world.

 
  • Report ID: 4462
  • Published Date: Sep 09, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2026, the industry size of vehicle telematics is estimated at USD 91.25 billion.

The global vehicle telematics market size was over USD 83.99 billion in 2025 and is anticipated to witness a CAGR of around 9.6%, crossing USD 210.06 billion revenue by 2035.

The North America vehicle telematics market commands the largest share by 2035, driven by rising vehicle fatalities, traffic congestion, and increasing demand for telematics and semiconductor production.

Key players in the market include Bosch Global Software Technologies, Bridgestone Mobility Solutions B.V., Trimble, Octo Group S.p.A., Verizon, MiX Telematics, Zonar Systems, Harman International, Microlise Limited, On Star Corporation, Qualcomm Technologies, Inc,.

Vehicle Telematics Market Report Scope

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